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How Much Does It Cost to Run an LED Bulb for a Year?

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A 9-watt LED bulb run 3 hours a day costs about $1.70 a year at the 2026 US average residential electricity rate of roughly 17 cents per kilowatt-hour. The formula is watts ÷ 1,000 × hours per day × 365 × your rate. Worth knowing: the Estimated Yearly Energy Cost printed on the FTC Lighting Facts label assumes 11 cents per kilowatt-hour, which is well below what most Americans now pay, so the figure on the box understates real cost by roughly half. In high-rate states such as California, Massachusetts and Hawaii, the same bulb costs $3 to $4.50 a year.

What does each bulb size cost?

All figures at 3 hours a day for a full year, which is the FTC label basis and makes the columns directly comparable with the number on the packaging. The brightness column is what actually decides which row to compare — ENERGY STAR points out that brightness is measured in lumens, not watts, which is why a 9-watt LED and a 60-watt incandescent belong on the same line in this table.

BulbBrightnesskWh/yearAt $0.11 (label)At $0.17 (US avg)At $0.32 (CA)At $0.43 (HI)
5 W LED~450 lm5.5$0.60$0.93$1.75$2.35
7 W LED~650 lm7.7$0.84$1.30$2.45$3.29
9 W LED~800 lm9.9$1.08$1.68$3.15$4.24
12 W LED~1,100 lm13.1$1.44$2.23$4.20$5.65
15 W LED~1,600 lm16.4$1.81$2.79$5.26$7.06
18 W LED~2,000 lm19.7$2.17$3.35$6.31$8.47
60 W incandescent~800 lm65.7$7.23$11.17$21.02$28.25
14 W CFL~800 lm15.3$1.69$2.61$4.90$6.59

The comparison that matters is the last three rows against the 9-watt LED: same light, roughly one-sixth of the incandescent cost and two-thirds of the CFL cost.

Close-up detail of the material being worked in a indoor lighting project, in soft overcast light

Why does the number on the box understate the cost?

Because the assumption behind it has not kept pace with electricity prices. The Lighting Facts label required by the Federal Trade Commission under its lighting labeling rule standardizes what appears on the packaging: brightness in lumens, life in years, appearance in Kelvin, energy used in watts, and Estimated Yearly Energy Cost. That last figure is calculated on 3 hours a day at 11 cents per kilowatt-hour.

Eleven cents was a reasonable national figure when the rule was written. As of 2026 the US residential average reported by the Energy Information Administration is around 17 cents, and residents of a dozen states pay considerably more. The consequence is that the yearly cost printed on the box is a consistent, standardized comparison between bulbs — which is what it was designed to be — but understates the actual dollars for most households by 50 percent or more. Use it to compare bulbs, not to budget.

Low-angle view of a person switching, in soft overcast light

How much does my state change the answer?

Rate band, 2026Representative states9 W LED, 3 hr/dayWhole home, 30 bulbs
~11 - 13¢/kWhIdaho, Utah, North Dakota, Louisiana, Wyoming$1.09 - $1.29$33 - $39
~14 - 16¢/kWhTexas, Georgia, Ohio, Missouri, Tennessee$1.39 - $1.58$42 - $48
~17¢/kWh (US average)National residential average$1.68$50
~20 - 25¢/kWhNew York, New Jersey, Michigan, Vermont$1.98 - $2.47$59 - $74
~30 - 35¢/kWhCalifornia, Massachusetts, Connecticut, Rhode Island$2.97 - $3.46$89 - $104
~40 - 45¢/kWhHawaii$3.96 - $4.45$119 - $134

Rates as of 2026 and approximate. Your bill is the authority, and many households are on time-of-use or tiered rates where the marginal rate for additional consumption is higher than the average. Divide your total monthly bill by the kilowatt-hours used to get your real effective rate — it is usually higher than the headline supply rate once delivery charges are included.

Over-the-shoulder view of a person switching, in soft overcast light

What does the whole house cost?

A typical US home has 30 to 50 light fixtures, most used far less than 3 hours a day and a handful used much more. A reasonable whole-home estimate for a fully LED house is 250 to 500 kilowatt-hours a year, or $40 to $85 at 17 cents. The same house lit entirely with incandescents would use 1,700 to 3,300 kilowatt-hours, or $290 to $560.

Where the remaining money hides is in the few fixtures that run long hours: a kitchen ceiling, a porch light on dusk-to-dawn, a hallway left on overnight, a basement or garage. Those four locations often account for more consumption than the other thirty fixtures combined, which is where sensors, timers and getting the wattage right actually pay. Choosing the right output rather than defaulting to the brightest bulb available is covered in kitchen lighting and recessed light spacing.

One caveat worth stating: cheap bulbs that fail early cost more than the electricity they save. The US Department of Energy rates good-quality white LEDs for a useful life of 30,000 to 50,000 hours or longer, so a $2 bulb replaced three times in five years is worse value than a $7 bulb that lasts, and the failure modes are covered in how long LED bulbs actually last.

All figures are US dollars as of 2026 and vary with your utility, rate plan and season. Check your own bill for your effective rate.

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More from this hub: Indoor Lighting · Best smart bulbs · Best LED floor lamps · How we rank

Straight Answers

Frequently Asked

Is it cheaper to leave LED lights on or turn them off?

Turn them off. The old advice about leaving lights on came from fluorescent tubes, where the starting surge and the wear on the starter made short cycling genuinely costly. Neither applies to LEDs: the inrush current is negligible in energy terms, and switching cycles have almost no effect on lifespan. An LED left on for an hour you are not in the room costs exactly an hour of its wattage. Motion sensors and timers pay back readily on porches, closets, garages and basements.

How much does it cost to run LED lights all night?

A 9-watt bulb running 12 hours a night for a year uses about 39 kilowatt-hours, which is roughly $6.70 at the 2026 US average rate of about 17 cents. A 5-watt path or night light on the same schedule costs about $3.70. Even a whole porch of four 9-watt fixtures burning dusk to dawn is under $30 a year. Outdoor and security lighting is the one place where running lights continuously is cheap enough that convenience usually wins over savings.

How much do LED bulbs save compared to incandescent?

Roughly 85 percent of the electricity for the same light output. A 60-watt incandescent and a 9-watt LED both deliver about 800 lumens; over a year at 3 hours a day that is 65.7 kilowatt-hours against 9.9, a saving of about $9.50 a year per bulb at 17 cents. Across 30 bulbs in a typical home the saving is roughly $280 a year, plus the incandescent replacements you no longer buy. The payback on a $4 LED replacing a working incandescent is measured in months.

Does dimming an LED save electricity?

Yes, though not in exact proportion to the perceived brightness. Dimming reduces power draw, but the driver itself consumes a small fixed amount regardless, and the human eye perceives brightness non-linearly, so a bulb dimmed to what looks like half brightness is often drawing around 30 to 40 percent of full power. The saving is real but modest in absolute terms: dimming a 9-watt bulb saves pennies a year. Dim for comfort and atmosphere, not for the electricity bill.

Do smart bulbs cost more to run?

A little, because the radio and controller draw power even when the light is off. Standby consumption is typically 0.2 to 0.5 watts per bulb, which is about 1.8 to 4.4 kilowatt-hours a year, or roughly $0.30 to $0.75 each. In a house with 20 smart bulbs that is $6 to $15 a year of pure standby. It is not a reason to avoid them, but it is a reason to prefer a smart switch over twelve smart bulbs where the fixture is always switched as a group.